Casella Family Brands (CFB), producers of the Australian wine brand Yellow Tail, has announced that it has acquired full ownership of Peter Lehmann Wines (PLW).

Completion of the deal to buy the famous South Australian winery follows a period of due diligence. The acquisition is part of CFB’s strategy to expand into the premium wine sector.

CFB managing director John Casella said: “We have achieved a historic milestone for CFB and PLW, and a positive development for the Australian wine industry.”

“This partnership is a perfect fit. CFB has a clear strategy, great global scale, and proven operational excellence. PLW brings a strong presence in both domestic and international markets, valuable grower relationships, an iconic brand, and a strong portfolio. The complementary strengths of the two companies are a winning combination.”

Casella Family Brands is itself am Australian family owned and managed wine producer. The company says its intention is to further unlock the Peter Lehmann winery’s full potential by increasing scale in the domestic market and internationally, while respecting the legacy upon which the Peter Lehmann label was founded.

Margaret Lehmann said: “It’s time for PLW to move to the next stage in its evolution. It has had at times a turbulent corporate history, and I am delighted that it is finally in private family ownership. I believe it will continue to flourish because the patient capital of private ownership is better suited to the cyclical nature of the wine industry, which is after all an agricultural industry. I wish John Casella all the best and look forward to seeing the PLW business and the Barossa region prosper under his leadership.”

John Casella said: “As with any transaction of this size, scale and complexity, there is a transition period ahead in order to efficiently integrate the two companies. As this is only the beginning of the process, we ask for the patience of all stakeholders as we work through the merger. Our focus for the New Year will be to deliver a successful 2015 vintage.”